The Nigeria LNGLimited (NLNG) has made a significant step towards the Final Investment
Decision (FID) for its Train 7 Project, with the issuance of a Letter of Intent
for the Engineering, Procurement and Construction (EPC) Contract of the project
to SCD JV Consortium, reports ITREALMS.
SCD JV Consortium, ITREALMS gathered, is made up of Saipem of Italy, Japan’s Chiyoda and Daewoo of
South Korea.
This came, ITREALMS also gathered, on the heels of the Nigeria Content (NC) plan signed with Nigerian
Content Development Monitoring Board (NCDMB) and the recent milestone of the 3rd
of September, 2019 when NLNG submitted the summary outcome of the commercial bids
evaluation for the Train 7 Project to NCDMB in line with the project
certification and authorization procedure.
According to NLNG,
in a press statement available to ITREALMS by the General Manager, External Relations, Eyono Fatayi-Williams, the Letter of
Intent is one of the key milestones to be achieved on the road to FID by its
Shareholders; this expresses the intention to award the main EPC Contract for
the Train 7 Project to the preferred bidder, saying that it marks another significant
step towards the realization of Train 7 and it’s attendant value to NLNG’s Shareholders
and for the benefit of the Nigerian Economy.
The company,
Fatayi-Williams said, assured that the contracting process was transparent in
full compliance with all applicable laws and good industry practices, stating
that it will continue to operate its business in an open manner consistent with
its core values of Integrity and Excellence.
The Train 7 Project
is expected to ramp up NLNG’s production capacity by 35% from 22 Million Tonnes
Per Annum (MTPA) to around 30 MTPA. The Project will form part of the
investment of over US$10 billion including the upstream scope of the LNG value
chain, thereby boosting the much needed Foreign Direct Investment (FDI) profile
of Nigeria. . The Project is anticipated to create about 10,000 new jobs during
the construction stage, and on completion, help to further diversify the
revenue portfolio of the Federal Government and increase its tax base. The
company said this was in line with its corporate vision of ”Helping to build a
better Nigeria”. The construction period after FID will last approximately four
to five years.
NLNG is owned by
four Shareholders, namely, the Federal Government of Nigeria, represented by
Nigerian National Petroleum Corporation (49 per cent), Shell Gas B.V. (25.6 per cent), Total Gaz Electricite
Holdings France (15 per cent), and Eni International N.A. N. V. S.àr. l (10.4 per
cent).
The actualisation
of the Train 7 Project comes as NLNG celebrates 30 years of its incorporation
and 20 years since exporting its first LNG cargo in 1999.
Remmy Nweke/DoP
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